When you set up a director, you need to select the director's NI type. There are two types:
Cumulative Director: The NI will be calculated on a cumulative basis. This is recommended for Directors whose earnings fluctuate each pay period.
Period Director: The NI will be calculated on a period-by-period basis until the final pay period of the year, or earlier if the director becomes a leaver, when it reverts to calculating using the cumulative method
Once you know which type is required, you can change the employee record into a director. To do this, follow the steps below.
Click Employees, and then click Records.
Find the required employee, and then click View Record
.
Click the Government tab, and then click Edit.
Click the NI Type drop-down, and click the required option.
Enter the director's earnings periods.
đ¤Tip: The Director's Earning Period field is the number of weeks remaining in the current tax year from when they became a director.
Click Save.